GAMING FOR AFRICA
pick up where the ball lands, and that feeds into the software, and the software then updates immediately. They’re physically spinning the ball and all of this is being recorded and broadcast or streamed into our software. These products are currently available. And again, the only difference between these games, and what the government has determined is illegal, is whether they are computer generated or computer-driven random number generators.
Q: What recommendations would you make for government when it comes to putting the regulations in place? And how would the regulatory framework benefit the industry? NM: South Africa is a forerunner in the online, casino and online gambling space. Some of the biggest online casinos in the world have, during the last 20 years, been run out of South Africa. We develop what is arguably one of the best online gaming platforms and software in the world. It’s proudly developed here, in Durban and Pretoria. There are a few operations in South Africa that run online casinos regulated in other parts of the world and therefore not under the jurisdiction of South Africa. Bearing in mind that the birth of online casinos was probably around 1999, that means that there is an enormous wealth of knowledge sitting in the people that have been involved in these businesses for the last 20 years. We believe the South African government should consult with the industry on that basis. Additionally, there are many countries where online gambling regulations have been successfully introduced, such as in the UK and Europe, that we can draw from to draw up our own regulations. Of course we would have to customise these for South Africa because we have a different set of challenges. We’re not the UK, and we’re not first-world Europe, so we have a different set of responsible gambling aspects to consider. But we can nevertheless draw down from and adapt existing international regulation. We don’t have to reinvent the wheel.
The impact regulations would have on the
industry includes consumer protection. With regulations, consumers are not at the mercy of international or foreign based operators who don’t have to comply with the Responsible Gambling rules, with standards of software, and standards of operations. For example, SunBet is stringently governed by the Western Cape Gambling and Racing Board, to the extent that before we can display any advert, we first have to submit a draft to the Gambling Board for approval. This is to make sure that our adverts are not misleading, not enticing, and are not targeting the wrong markets. Consumer protection, I think, is at the forefront of the benefits of legalised online gambling. But a close second would be the money that it would add to provincial coffers in the form of gaming taxes. With respect to consumer protection, players
currently need to deposit money into online casinos and, oftentimes, because they are not regulated in the market, they use what we in the industry term ‘high-risk processing’. This is when credit cards are processed through a jurisdiction that is considered high-risk. The transaction would flow through Eastern Europe or China, for example, or through banks that are not necessarily your own, or through payment gateways that cannot necessarily be tracked because they are outside of South Africa’s jurisdiction. If something happens with your data, or with your credit card information, you’ve got a problem. If there’s a data breach, you can’t rely on chargeback. Chargeback occurs when you make a representation to your bank, that you didn’t make a transaction. In terms of tax, there currently aren’t any benefits
to the country because online gambling is illegal. Even sites that claim to be South African are generally not. These companies are often set up in offshore tax havens, so all that revenue is lost and won’t benefit the country.
Q: What are the dangers of illegal online gambling? NM: There are several aspects, including no age verification to check that players are 18 or older. You also don’t know how safe your data is. You have no come back in terms of the integrity of the software either. You are basically at the mercy of an illegal operator. With SunBet, for example, we have a physical call centre based right here – I can see them through my window. If you have a problem, you can call our call centre. If our call centre doesn’t help you, my number is published so you can call me. If you can’t get hold of me, you can talk to Sun International’s CEO. You can also lodge a dispute with the Gambling Board. There is a lot of room for recourse. And then of course, there’s a lot of exposure when you click on illegal sites that you don’t necessarily want to expose yourself to.
Q: How do you see the licenses being rolled out? NM: The National Gambling Board needs to get involved because different provinces have different rules for issuing of licenses. In some provincial jurisdictions, you can walk into
the office with your application form, pay the fee and leave with a license. In others, there may be a request for a proposal process. There are inconsistent requirements and processes across provinces, with different Gambling Boards setting their own rules. There needs to be a standardised national licensing
process will be equitable, adhere to certain management standards and ensure that these standards are being enforced across the country.
Q: What is the future for Sun International? NM: Sun International has completely embraced the concept of online and where it’s going. We see it as the next step in our business, but we see it as a very complementary part of our business. We’re able to use our land-based casinos, our resorts, our hotels, our golf courses and other group facilities to offer our clients a holistic entertainment experience.
Kenyan President Approves Revised 7.5% Gaming Turnover Tax
The fate of Kenya’s sports betting industry has been revived following President Uhuru Kenyatta’s signature of a 7.5% tax on gambling wagers. The tax measure was contained within the Kenyan
Revenue Authority’s (KRA) revised ‘Finance 2021 Bill’, which saw the government modify its federal taxes on gambling and telecom sectors. Securing its presidential approval, the KRA has
agreed to lower Kenya’s blanket 20% wagering tax imposed on all gambling verticals. The controversial tax charge had been approved as a
measure of Kenya’s 2020 Finance Bill, which was suspended following a last-minute injunction by a Nairobi High Court that demanded the KRA justify the ‘doubling of tax rate that had originally been settled at 10%’. Under pressure to sign-off Kenya’s 2021/2022
National Budget, Kenya’s government ordered Treasury Secretary Ukur Yattani to undertake a review of business tax rates.
Yattani’s Finance Committee recommended the
KRA to impose a blanket 7.5% wagering tax on all gambling verticals, including lotteries, a measure that should be approved as an amendment to the Finance Bill requiring President Kenyatta’s ascent. Despite being endorsed by the Finance
Committee, Kenyan gambling held no guarantee of securing the President’s approval – as Kenyatta had become a vocal opponent of the gambling sector.
For a number of years the
Kenyatta government had ordered market leader SportPesa and others to pay the KRA a reported KSH 60 billion in unpaid taxes related to charges on player winnings. Disputes between the Kenyatta government
and the sports betting sector were brought to a boiling point in 2019, as national telecoms and banks were ordered to terminate all business services for licensed bookmakers. Kenya’s regulatory uncertainty saw a number
of bookmakers, including SportPesa, exit the market. However, in 2020 Sportpesa would return under the new ownership of Milestone Games and have its licence immediately suspended by the Betting Control and Licensing Board (BCLB)
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